The 40-year-old entrepreneur, whose business interests range from office management to vending machines to "never slip" rubber booties, purchased the city landmark two weeks ago from First Valley Bank of Bethlehem.

"I was intrigued by this building," Russell said during an interview yesterday in his makeshift office in the lower level of what is now known as the Sovereign Building.

"I think the historical rehabilitation of this building was outstanding," he said. "It has a lot of character and a lot of potential. This, by Philadelphia standards, is first-class office space."

The building also has plenty of empty space, which is how Russell came to purchase it.

Allentown economic officials say the layout of office space in the building made it hard to find tenants, despite the city's attempts to aid development with a $1 million federal Urban Development Action Grant -- a loan that was to be repaid to the city.

First Valley Bank bought the four-level office structure -- and Allentown lost its $1 million investment -- when owner Sovereign Realty couldn't make its mortgage payments or pay its taxes. The bank, which held Sovereign's $2.2 million mortgage, was the lone bidder at a Lehigh County sheriff's sale in September, buying the building for $779.

A third of the building's office space is in the lower level. Tenants occupy space in the middle of the third floor, leaving 7,000-square-feet of oddly shaped and apparently unrentable areas in the front and rear.

Despite an elaborate lobby, much of the available first-floor office space is undeveloped. Russell said he is well aware of the building's problems, but the inefficiencies are what attracted him.

"I don't think it's ever made money for its owners, but I think it can make money," Russell said. "You don't want to buy a building that's losing money and is being run right. Then you have to say, `How are we going to make money?' "

Russell's plans to make money are simple: change the layout in the troubled areas and aggressively recruit new tenants.

Because the building is on the National Register of Historic Places, the building's former investors received tax credits, Russell said. Many of the building's investors appeared to be more interested in the credits than in making the building solvent, he said.

"For every tax dollar they spent, they got a 25 cents tax credit, so it behooved them to spend more money," Russell said.

An appraiser testified at a county tax hearing last year that the building was worth $3.5 million on the open market.

Russell declined to disclose the purchase price of the building or other numbers in his agreement, but stated that he did get a reduction in the $56,437 in back taxes owed on the property.

"I probably wouldn't have bought the building if that didn't happen," said Russell.

Russell did say a significant investment would be needed to change some of the building layouts. Among his goals is to create what he calls "executive commons" -- office space for smaller companies that would be in an office region with the same receptionist and equipment, such as copy machines.

"There is definitely a need for that among the smaller businesses," Russell said.

A project closer to Russell's heart is revitalizing the building's lobby with its dramatic ceilings and prestigious entrance. The new owner says some areas of the lobby lead nowhere while other valuable space is covered up. The space is absent of people too, he said, and he plans to have receptionists there as part of his plan to put "life into the lobby."

The Sovereign Building is his first major development move in the Allentown area, but the Temple University graduate (he studied pre-med) is familiar with the area. Russell's father, George, was a doctor who operated a psychiatric clinic at 15th and Walnut Streets beginning in the 1960s.

Russell and his father, who recently passed away, also created G.W. Russell and Associates, an Allentown business that imported rubber cleats that slipped over the bottom of people's shoes to help their tread. "Never Slip Safety Treads" are still imported from West Germany to the office building at 15th and Walnut and sold to industries, clothing outlets and even the U.S. Postal Service.

Russell broke into the development business 10 years ago when he rehabilitated an old store into offices on Philadelphia's Society Hill. The project led to the creation of his development firm, Philadelphia Historic Restoration Associates.

Since that time, Russell has been involved in projects in Bala Cynwyd and Northeast Philadelphia. His interests also include the vending world, where he owns an interest in a company that provides food and drink machines for industries.

The Sovereign Building was officially sold to a partnership that included fellow Philadelphian Franklin Ash, whom Russell called a "silent partner." The partnership will operate as Sovereign Executive Office Corp.

Some of the tenants in the building include Lehigh County Community College, Binney and Smith Inc. crayon manufacturers and Allentown architects Wallace and Watson Associates.